Recently, the news about Wanda Group's plan to locate in Wanda Plaza, a first- and second-tier city, in exchange for working capital, continues to ferment.
The Beijing News reporter learned that Wanda Group's plan to ** Wanda Plaza did not happen in the near future, as early as the middle of this year, the news spread in the industry, and the Wanda Plaza in the asset package is not only Wanda Plaza in first- and second-tier cities, but distributed throughout the country.
At present, many insurance companies are paying attention to Wanda's asset package, in addition to everyone's insurance, Sunshine Insurance is also paying attention to Wanda's asset package, and the two sides are negotiating. In response to the incident, Wanda responded: "No comment. Everyone responded that "there is no more information to disclose at this time." In addition, the Beijing News reporter tried to contact Sunshine Insurance, but did not receive a response.
Wanda Plaza, which is eligible for insurance funds, is mainly located in second- and third-tier cities.
Some of Wanda's squares were sold in the middle of the year, and the intermediaries were mainly looking for insurance and ** companies. Xue Jianxiong, president of Youtaocheng, said.
This operation may be related to the invalidation of several Hong Kong stock IPO applications of Zhuhai Wanda Commercial Management. On April 25 this year, the Hong Kong Stock Exchange** disclosed that the status of Zhuhai Wanda Commercial Management's prospectus was updated to "invalid". On June 28, Zhuhai Wanda Commercial Management updated the IPO application materials again and submitted a prospectus to the Hong Kong Stock Exchange, which is the fourth time that Zhuhai Wanda Commercial Management has submitted a prospectus to the Hong Kong Stock Exchange. If it does not pass the hearing, the prospectus will lapse at the end of December this year. According to the VAM clause of Zhuhai Wanda Commercial Management, if it fails to go public by the end of December this year, it will need to pay about 30 billion yuan of equity repurchase money to pre-listing investors.
In the eyes of industry insiders, if the listing authorization is not reached within the validity period of the prospectus, it will inevitably lead to a delay in the company's listing rhythm. On the one hand, this will trigger concerns and speculation about corporate liquidity in the industry;On the other hand, it will also raise the risk of listing VAM clauses.
In this context, people familiar with the matter said that Wanda may have long expected that it would be difficult to go public before the end of this year. Under the pressure of funds, Wanda then chose the best assets. The Wanda Plaza in the asset package is not only Wanda Plaza in first- and second-tier cities, but distributed all over the country.
As for the buyers, the Beijing News reporter learned that although there are many ** companies, at present, the real conditions can be met by insurance funds, and many insurance funds are paying attention to Wanda's asset portfolio. Among them, at the end of May this year, we indirectly acquired the three shopping malls of Shanghai Songjiang Wanda Plaza, Xining Haihu Wanda Plaza and Jiangmen Taishan Wanda Plaza. On this basis, in October this year, we acquired Shanghai Zhoupu Wanda Plaza again.
In addition to our insurance, Sunshine Insurance is also paying attention to Wanda's asset package, and the two sides are negotiating. In response to the acquisition of Wanda Plaza, everyone insurance responded: "There is no more information to disclose for the time being." In addition, the Beijing News reporter tried to contact Sunshine Insurance, but did not receive a response.
It is worth mentioning that due to the high requirements for capital returns, insurance capital is very low. Xue Jianxiong introduced, "The insurance capital requirements should be about 8% of the net return. "Therefore, Wanda Plaza in first-tier cities cannot meet the return requirements of insurance capital for funds, and Wanda Plaza in second- and third-tier cities is mainly eligible for insurance funds.
"Out of the table" is intended to be financed, and "buyers and sellers take what they need".
However, Wanda Commercial Management's move is not a real **, and the industry calls it "off-the-table business". The so-called "off-balance sheet business" means that, in most cases, there will be a repurchase clause, that is, after a certain number of years, such as 3 years later, it can be repurchased, and it is also publicized in the contract, and the project can be reclaimed, so it is not in the real sense, it is more of a financing arrangement.
According to a person familiar with the matter who did not want to be named, similar "off-the-table" behavior is more common in the field of commercial real estate. "In the past ** reports, there is no shortage of commercial projects, the reason behind it is not a simple ** behavior, from a deep look at the essence of the transaction, it may be that the enterprise for the sake of debt reduction or other considerations, and then make a 'off the table' arrangement, in fact, it is a financing behavior, but this debt behavior can not be seen on the financial statements. ”
According to the analysis of the above-mentioned people familiar with the matter, for Wanda, there will be no big loss if these projects are "off the table" at this stage. There is uncertainty about whether these projects will be sustainable in terms of rents, growth rates, etc., so these projects are less likely to release consumer REITs. But if these projects can be "off the table", it will be a good thing for Wanda.
Now, although Wanda has a low price ** Wanda Plaza, but in the future, the IPO application is successful, and after having funds, there is still a chance to buy it back. Even if it cannot be repurchased in the future, Wanda still retains the best projects in key areas of first-tier and strong second-tier cities. The person familiar with the matter added.
At the same time, it is also good for buyers to acquire these assets. The above-mentioned people familiar with the matter pointed out that because Wanda has given a very low discount, that is, on the basis of a thick enough "safety cushion", and the occupancy rate of the project during the period can reach more than 90%, the income is high enough, so the risk is controllable. In the future, if Wanda does not repurchase, when market conditions are right, insurance funds can also use it. To sum up, it is a win-win situation for both buyers and sellers.
It is worth noting that in addition to the **Wanda Plaza "asset package", Wanda has also put Wanda movies on the shelves. On December 6, Wanda Film announced that Wang Jianlin, the actual controller of the company, intends to transfer 51% of the shares of Beijing Wanda Investment, the controlling shareholder of the company, to Shanghai Ruyi Investment Management
In July this year, the indirect controlling shareholder of Wanda Film has transferred 49% of its equity in Beijing Wanda Investment to Shanghai Ruyi Film and Television Production, Shanghai Ruyi Investment Management and Shanghai Ruyi Film and Television Production, and the actual controller is Ke Liming. "Confucianism" realized a wholly-owned holding of Beijing Wanda Investment and became the largest shareholder of Wanda Film.
In this regard, ** Feng, secretary-general of the Urbanization Management Committee of the China Management Science Society, believes that according to the VAM clause, Wanda may have to pay about 30 billion yuan of equity repurchase money to pre-IPO investors. In addition, Wanda also has offshore US dollar bonds. Wanda first sold Wanda Cinema and then sold part of Wanda Plaza in exchange for working capital and solved the immediate debt, which is a last resort. "Wanda's current situation is somewhat tragic, and it is recommended to be supported by relevant policies. ”
Whether or not to continue** the asset depends on the level of financial pressure.
*Wanda Plaza will have a certain impact on the business layout and business structure of Wanda Group. Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, said that as a commercial real estate development and operation enterprise, Wanda Plaza is one of the important assets of Wanda Group and an important part of its business territory. If Wanda Group succeeds in ** some of the Wanda Plaza project assets, it will help it adjust its business structure, optimize resource allocation, and better respond to market competition.
Overall, Wanda Plaza is an important strategic decision that will have a profound impact on the future development of Wanda Group. At the same time, in the face of the setback of the listing, Wanda Commercial Management needs to actively seek new development opportunities and adjust its development strategy, business structure and asset allocation to achieve sustainable and stable development. Bai Wenxi said.
So, next, will Wanda further ** related assets?What is Wanda's trend?In this regard, industry insiders pointed out that whether Wanda is the best asset in the future depends on how much pressure Wanda's capital is. The future trend may have two major directions: on the one hand, if Wanda Commercial Management's IPO is eyebrow-eyed, or has reached an agreement with overseas debts, and the financial pressure is not so great, there will be no need for larger funds to "go off the table", and Wanda may not release better quality projects, or will not give better project returns and financial requirements;On the other hand, if investors and debtors are under greater pressure, Wanda may release better commercial projects and better assets.
According to Zhu Lingbo, dean of the Asia-Pacific Commercial Real Estate Institute, the future direction of Wanda Commercial is restricted by two ends, one is the circulation of capital and capital, and the other is whether consumption can recover and maintain a reasonable and growing trend, so as to support the appreciation and realization of assets.
Beijing News reporter Zhang Xiaolan.
Edited by Wu Xin and proofread by Wang Xin.